PPN SYSTEM - HAS DONE MORE HARM THAN BENEFIT - CONTINUES TO VIOLATE PRINCIPLE OF INDEMNITY

I wrote an article titled PPN SYSTEM - FAILURE OR SUCCESS, which was published herein this publication in March, 2017.

- R C Thakker

In the said article, I had anaylsed the reasons in detail, which are the causes that this system was failing in its objective in the first five years of its' introduction by four PSU companies. Unfortunately, now when almost a decade is passed the PPN system has done more harm than benefit and continues to violate Principle of Indemnity.

In this present article, at the cost of some repetition, I have once again anaylsed with more in-depth study of the system from the beginning particularly in the light of new scenario, where private sector including standalone health insurance companies, have come in the field with aggressive marketing of their health products. This new scenario has proved how the PPN system is harming dangerously the health insurance portfolios of four PSU companies. Worst affected stakeholders are not only policy-holder but also the intermediaries involved in selling these products.

Medical insurance was introduced at the insistence of Government around nineteen eighties with the noble objective of providing financial succor to citizens whenever any family member faces medical exigencies particularly when the disease is a critical one. It indeed has played a vital role for these objectives and innumerable number of families have been benefited, who, otherwise, would have been financially ruined or would have been deprived of costly treatments.